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On March 2 0 , 2 0 2 4 , Cullumber Corporation purchased two machines at auction for a combined total cost of $ 2
On March Cullumber Corporation purchased two machines at auction for a combined total cost of $ The machines were listed in the auction catalogue at $ for machine X and $ for machine Y Immediately after the auction, Cullumber had the machines professionally appraised so it could increase its insurance coverage. The appraisal put a fair value of $ on machine X and $ on machine Y
On March Cullumber paid a total of $ in transportation and installation charges for the two machines. No further expenditures were made for machine X but $ was paid on March for improvements to machine Y On March both machines were ready to be used.
The company expects machine X to last five years and to have a residual value of $ when it is removed from service, and it expects machine Y to be useful for eight more years and have a residual value of $ at that time. Due to the different characteristics of the two machines, different depreciation methods will be used for them: machine X will be depreciated using the doublediminishingbalance method and machine Y using the straightline method.
a
Prepare the journal entry to record the purchase of the machines, indicating the initial cost of each.
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